Edoc Acquisition Corp. Receives Expected Notice from Nasdaq Regarding Delayed Annual Report

Rhea-AI Summary

Edoc Acquisition Corp. (NASDAQ: ADOC) announced it received a notice from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to the late filing of its Annual Report on Form 10-K for 2020. The company is evaluating whether its warrants should be classified as liabilities instead of equity, as per a recent SEC statement affecting SPACs. Edoc has until June 15, 2021, to submit a compliance plan, with a potential extension until October 12, 2021, if accepted. Despite the notice, there is no immediate effect on trading.

Positive

• Company has until June 15, 2021, to submit a compliance plan.
• Potential extension until October 12, 2021, if Nasdaq accepts the plan.

Negative

• Failure to timely file the Annual Report on Form 10-K.
• Potential reclassification of warrants as liabilities could impact financial statements.

New York, NY, April 22, 2021 (GLOBE NEWSWIRE) -- Edoc Acquisition Corp. (NASDAQ: ADOC) (the “Company”) announced today that it received a notice (“Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) stating that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Rule”) because the Company failed to timely file its Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) with the Securities and Exchange Commission (“SEC”). The Notice has no immediate effect on the listing or trading of the Company’s securities on the Nasdaq Capital Market.

As previously disclosed in the Current Report on Form 8-K filed on April 15, 2021 by the Company, on April 12, 2021, the staff (the “Staff”) of the Division of Corporation Finance of the SEC issued a statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies” (the “Staff Statement”). The Staff Statement, among other things, highlighted the potential accounting implications of certain terms that are common in warrants issued in connection with the initial public offerings of special purpose acquisition companies (“SPAC”) such as the Company.  The Company is continuing to evaluate its financial statements for the year ended December 31, 2020 to determine whether its public and private warrants may be required to be accounted for as liabilities, rather than equity, in its Form 10-K. The Company is working diligently to finalize the financial statements and to file the Form 10-K as soon as practicable.          

Under Nasdaq rules, the Company has 60 calendar days from the date of the Notice, or until June 15, 2021, to submit a plan to regain compliance with the Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant an exception of up to 180 calendar days from the due date of the Form 10-K, or until October 12, 2021, to regain compliance.

About Edoc Acquisition Corp.

Edoc Acquisition Corp. is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. It intends to focus on businesses primarily operating in the healthcare sector in North America and Asia-Pacific.

Forward-Looking Statements

This press release may include, and oral statements made from time to time by representatives of the Company may include, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”). All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus for the Company’s initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact: 

Edoc Acquisition Corp.
7612 Main Street Fishers
Suite 200
Victor, NY 14564
Attention: Kevin Chen

FAQ

What is the reason for Edoc Acquisition Corp.'s non-compliance with Nasdaq?

Edoc Acquisition Corp. failed to timely file its Annual Report on Form 10-K for 2020.

What is the deadline for Edoc Acquisition Corp. to submit a compliance plan?

The deadline to submit the compliance plan is June 15, 2021.

Could Edoc Acquisition Corp. receive an extension for compliance with Nasdaq?

Yes, if Nasdaq accepts their compliance plan, they could receive an extension until October 12, 2021.

How does the SEC's statement affect Edoc Acquisition Corp. and its warrants?

The SEC's statement may require Edoc to classify its public and private warrants as liabilities, impacting its financial statements.